| Cheil Worldwide (030000) : Measures up; Expect a bright 2012 | |||
| Date | Feb/03/2012 | PDF View |
Cheil_120203-ed.pdf
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| - Cheil’s 4Q11 OP of W42bn was met our expectations (W40.9bn) and beat the consensus of W35.9bn. GP jumped 14.9% YoY to W148.4bn on greater spending by major advertisers such as Samsung Group and the brisk addition of new clients. OP fell 38.7% YoY but would have increased 8.2% if excluding disposal gains of W29.7bn from the Credu stake in sale 4Q10. - We maintain BUY and our TP of W24,000 that equals a 12MF PE 20.4x. We maintain BUY. 1) Cheil’s billings rate should climb on more efficient ad sales via private media representatives, and the headquarters’ billings share should expand from 16.8% in 2010 to 21.5% in 2013F. Moreover, OP should jump 37.8% YoY in 2012F. 2) Samsung Electronics’ ad spending is set to go up with aggressive promotions at home and abroad for its flagship products. 3) Cheil will look to acquire ad agencies in the US and China to further expand its non-Samsung advertiser pool. |
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